Indonesia to Implement Bioethanol E20, Fuel Importers Prepare to Be Disappointed!

The government is targeting the implementation of a mandatory 20% bioethanol blend (E20) in fuel oil (BBM) starting in 2028. This is aimed at reducing dependence on imported energy while strengthening national energy resilience.

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that the E20 plan stems from an evaluation of the successful biodiesel programme already applied to diesel fuel.

“We must shift to plant-based fuels, learning from biodiesel used for diesel. That’s when the idea came to me late at night while I was sitting and thinking: if we can use CPO for diesel, why not use other plant-based materials for petrol?” Bahlil said during the Synergy of IPB Alumni for the Nation event on Saturday (2/4/2026).

According to Bahlil, the development of bioethanol is also inspired by the experiences of several countries that have implemented it earlier. He even conducted study visits to Brazil and other countries to learn about the policy implementation.

Bahlil noted that in Brazil, bioethanol use has reached an E30 blend, and in some regions, E100 or pure ethanol is already used as vehicle fuel.

“I learned that in Brazil, E30 is mandatory, and in some states, it’s already E100,” he said.

Bioethanol itself can be produced from various feedstocks such as corn, sugarcane, and cassava—commodities abundant in Indonesia. This is seen as capable of delivering significant economic impacts, particularly in creating jobs and increasing community incomes in the regions.

To meet initial needs, the government will open options for importing bioethanol. However, this import will be temporary while encouraging an increase in domestic production.

Bahlil estimates that implementing E20 in 2028 will require at least 8 million kilolitres of bioethanol. Meanwhile, current petrol imports stand at around 20 million kilolitres per year.

With the E20 implementation, part of the petrol needs will be replaced by bioethanol, thereby significantly reducing BBM imports.

“If we make E20 ethanol, the mandate in 2028 is eight million. Currently, we import 20 million, so with a 20% mandatory, it’s reduced by eight million. So importers are left with 12 million. How can they not have toothache? They’re all over social media about this,” Bahlil revealed.